How to Tell you are Undercharging for your Cakes
Are You Undercharging for Your Cakes? 5 Signs You Might Be & How to Fix It
Every cake designer goes through this stage in their cake business. You want to book more cake orders so you can grow your cake business. But, you are spending SO much time on your cakes that you feel you aren’t charging enough.
Especially when you look at your bank account and see that there’s not much left at the end of the month.
You’re putting in the hours, perfecting your craft, and creating edible works of art—so why isn’t your bank account reflecting all that effort? If this sounds familiar, it’s time to take a hard look at your pricing strategy.
One of the biggest struggles cake designers face is finding the right balance between attracting customers and ensuring they’re getting paid fairly for their time and expertise. It’s easy to fall into the trap of setting prices too low, especially when you’re just starting out. Maybe you’re afraid that charging more will scare away potential customers, or perhaps you compare your prices to cheaper competitors and feel pressured to match them.
But here’s the truth: If you don’t price your cakes properly, your business won’t be sustainable, it won’t grow and you are spending more money than what is coming in. You’ll be working harder, not smarter, and the passion that once fueled your creativity will start to feel like a burden. You’ll begin to ask yourself, “When will my business really take off?” You may begin to question how much longer you can go running your business making the money you are currently making.
Let’s circle back to the question I posed at the beginning of this message, how can you tell if you’re undercharging? Here are five telltale signs that you are—and what you can do about it.
1. YOU ASK YOURSELF (OR OTHERS) IF YOU UNDERCHARGED
Have you ever completed a cake order and then immediately thought, “Did I charge enough for this?” Or worse, have you found yourself posting in Facebook cake groups asking fellow bakers if your price was reasonable? I know you see the cake designers in Reddit Groups, Facebook Groups, and other online communities asking “What would you have charged for this cake?” Other cake designers chime in and will most likely tell you what they would have charged for the cake you just made.
If you’re second-guessing your pricing, chances are you did undercharge because you had the thought that you didn’t charge enough to begin with.
When you charge what your cakes are truly worth, you don’t question it. You feel confident in your pricing because you know the time, skill, and ingredients that went into it. You are usually proud that you earned exactly what you provided to the customer, you are beaming with joy! Or, you feel indifferent and still don’t question it. If you feel a bit cruddy that you may not have charged enough, trust that feeling and take that as a hint to raise your cake prices next time.
How to Fix It:
Stop looking for external validation. Trust your pricing if it’s based on a solid formula.
Calculate your costs (ingredients, labor, overhead, and profit margin) before quoting a price.
If your intuition tells you it’s too low, listen to it. Adjust your pricing accordingly.
A well-priced cake leaves you feeling satisfied, not anxious or doubtful about whether you made enough money. Instead of second-guessing your decision, you can confidently deliver your cake knowing that your hard work, time, and skill have been fairly compensated.
If you’re struggling with pricing your cakes for profit, I’ve got something for you! I’ve created an awesome Cake Pricing Checklist that will help you break down your pricing structure and ensure you’re charging what your cakes are worth. Grab it for FREE below!
2. YOU BEGIN TO RESENT THE CAKE ORDER
Have you ever worked on a cake order that took twice as long as you expected, and by the end of it, you were downright annoyed? I know, it’s extremely frustrating! You thought it would take 7 hours yet it took 14 hours to complete the cake.
Maybe you underquoted, thinking it would be a quick project. Then, as you’re in hour six of decorating, you realize you’re barely making minimum wage.
If you feel irritated while making a cake—especially if you know deep down it’s because you didn’t charge enough—it’s a huge red flag.
How to Fix It:
Time yourself while working on cakes so you can accurately estimate labor costs.
Build a pricing structure that accounts for unexpected extra work.
Implement a rush fee for last-minute orders to compensate for additional stress and time.
When you charge appropriately, you’ll enjoy the process instead of feeling drained and frustrated. You’ll approach each order with excitement rather than dread, knowing that your time and effort are being fairly compensated. The creative process becomes more enjoyable, and you can focus on delivering quality work rather than worrying about whether you’re making enough money to sustain your business.
3. YOU ARE BROKE AT THE END OF THE MONTH
Ever wondered, Where did all my money go?!
You know you’ve been busy with cake orders, yet somehow, your bank account doesn’t reflect all the hard work you put in. That’s a sign you’re not pricing your cakes for profit.
Your business should be making you money, not just breaking even. If you’re barely scraping by each month, you’re likely undercharging.
How to Fix It:
Track every expense related to your cake business—ingredients, utilities, marketing, packaging, and your own salary.
Set a clear profit margin goal. If you want to make a livable income from your cakes, your pricing needs to reflect that.
Stop thinking about what customers want to pay and start focusing on what you need to charge.
Making beautiful cakes is wonderful, but if your business isn’t financially sustainable, it’s just an expensive hobby that drains your time, energy, and resources without providing the financial security you need. No matter how passionate you are about baking, passion alone won’t pay the bills, fund new equipment, or allow you to grow your business. To turn your talent into a thriving cake business, you must ensure that your pricing strategy supports profitability, not just creativity.
4. YOU LET YOUR CUSTOMERS QUOTE YOUR CAKES
A customer comes to you and says, “I only have $250 for a three-tiered cake with all the bells, whistles, and glitter.”
Instead of politely declining, you hesitate. You really need the money, so you agree, even though you know that cake should be at least double that price.
This is a dangerous cycle. The more you allow customers to dictate your pricing, the more you reinforce the idea that your work is negotiable.
How to Fix It:
Set firm pricing guidelines and stick to them.
If a customer has a smaller budget, offer alternatives (smaller cake, simpler design) rather than lowering your price.
Use a confident and professional tone when discussing pricing. (“This is my pricing for that design. Let me know if you’d like me to suggest a more budget-friendly option.”)
Would you walk into a high-end bakery and tell them you only have $5 for a gourmet cake? No. You’d either pay their price or look elsewhere. Your cake business should operate the same way.
5. YOU NEVER GIVE YOURSELF A RAISE
If you've been charging the same prices for years despite improving your skills and gaining more experience, you're likely undercharging. Due to inflation, cost of living, cost of cake expenses, cost of practically everything going up around the world, if your paycheck isn’t keep up with the flow of money, you will feel that you are falling behind financially.
Your expertise and efficiency increase over time, and your prices should reflect that. When you have more time in the industry, you have a good flow of customers, and you are trusted in your industry and community, that comes with a certain level of security for your customers. Just like in any other career, you deserve a raise for your growth and effort.
If Netflix can raise their prices for offering the same service as before, then you can raise your price as well when you have grown as a cake designer and as a business owner.
How to Fix It:
Regularly review and adjust your pricing based on market trends and skill level.
Factor in inflation and increased costs of ingredients.
Set a schedule for pricing adjustments, such as annually or biannually, to ensure you're keeping up with industry standards.
You deserve to give yourself a raise in your cake business for all of the hard work you have put in to become the skilled artists and business owner you’ve become. When is the last time you’ve even yourself a raise? If it’s been years or you’ve never given yourself a raise, now is the time! What are you waiting for, you deserve it.
Final Thoughts
Pricing your cakes correctly is one of the most important aspects of running a successful cake business. If you’ve identified with any of these five signs, it’s time to take action.
Remember, your time, effort, and skills are valuable. Charging what you're worth not only benefits your business but also enhances your confidence as a cake designer.
Action Steps to Fix Your Pricing:
Use a Pricing Formula: Factor in ingredients, labor, overhead, and desired profit.
Stop Apologizing for Your Prices: You are providing a luxury, custom service. Own it.
Educate Your Customers: Explain what goes into creating a cake so they understand the value.
Know Your Worth: The right customers will pay your prices. Don’t cater to bargain hunters.
Download My Free Cake Pricing Checklist!
If you’re still guessing when pricing your cakes, you’re likely undercharging. Take the guesswork out of it and learn how to price your cakes for profit. Click here to download.
Your talent deserves to be paid fairly. You can’t guess your way to success—so start pricing like a pro today!
By implementing these pricing strategies, you’ll not only stop undercharging, but you’ll also start building a profitable cake business. No more resentment, no more financial stress—just confidence in your prices and a business that thrives.
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Have you ever resented a cake order because you knew you didn’t charge enough? Tell the community about it!
We all can learn from each other and grow as a community together.
Happy baking and pricing!
